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Epack Durable, the second largest original design manufacturer of room air conditioners in India, has set its price range at Rs 218-230 per share for its first public issue on January 16. The fundraising target in the upper price band will be Rs 640 crore.
The IPO, which is a mix of a fresh issue of Rs 400 crore by the company and an offer for sale (OFS) of 1.04 crore shares by the existing shareholders, will open for subscription on January 19 and close on January 23. The anchor book portion of the issue opens for one day on January 18th.
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This will be the third public issue in the current year after the IPOs of Jyoti CNC Automation and Medi Assist Healthcare Services and ahead of the IPO of Nova Agritech.
Promoters Bajrang Bothra, Laxmi Pat Bothra, Sanjay Singhania and Ajay DD Singhania and Pinky Ajay Singhania, Preity Singhania, Nikhil Bothra, Nitin Bothra and Rajjat Kumar Bothra, who are part of the promoter group, will sell shares worth Rs 51.75 lakh of Rs 119 crore in OFS, in the upper price range.
Also Read: Medi Assist Healthcare IPO: Should you subscribe to Rs 1,171.58 crore issue?
Additionally, 52.62 lakh shares worth Rs 121 crore will also be sold by public shareholders namely India Advantage Fund S4 I and Dynamic India Fund S4 US I.
The promoters' stake in the Uttar Pradesh-based company stands at 65.36 per cent and the remaining 34.64 per cent is held by the public, including India Advantage Fund S4 I and Augusta Investments Zero Pte Ltd.
The minimum lot size was set at 65 shares. Retail investors can bid for at least 65 shares worth Rs 14,950.
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Also Read: Nova Agritech IPO to open on January 22: Details of the issue can be found here
Half of the IPO size is reserved for qualified institutional buyers (QIBs) and 15 percent for non-institutional investors (i.e. high net worth individuals).
Epack Durable, which serves leading companies such as Blue Star, Daikin Airconditioning India, Voltas, Havells India, Haier Appliances (India), Bajaj Electricals, BSH Household Appliances Manufacturing and Usha International, will utilize Rs 230 crore of net new revenue for expansion of manufacturing facilities and Rs 80 crore for debt repayment. The remaining amount will be used for general corporate purposes in the future.
Also read Moneycontrol's exclusive announcement about Medi Assist's IPO
The Bothra and Singhania-promoted company has recorded good financial performance in the past few years, but operating margins have been under pressure due to higher input costs. Net profit rose 83.4 per cent year-on-year to Rs 32 crore for the 2022-23 financial year ended March and revenue from operations rose 66.5 per cent to Rs 1,539 crore in the same period.
EBITDA (earnings before interest, taxes, depreciation and amortization) rose 49 percent at Rs 102.5 crore in the last fiscal compared to the previous fiscal. However, the margin fell by 78 basis points to 6.66 percent over the same period.
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